Top Recurring Deposit Schemes

You must have heard about recurring deposits and how they are a great savings tool. If you are searching for top RD schemes rolled out by banks, read ahead.

What are RD Schemes?

RD is short for recurring deposit and it is a very convenient tool for saving for short and long-term goals. You can make monthly payments toward an RD account and earn interest throughout its tenure. 

Here are some features of recurring deposits - 

• Easy automated monthly payments

• Start from as low as Rs.10, depending on the terms and conditions of the bank

• The tenure can be anywhere between 6 months to 10 years

• You don’t have to make any lump sum payments

• Interest rates range from 2.65% to 8.35%

• You can make premature withdrawals by paying a small penalty

• You can take loans against 80%-90% of the RD amount saved

Top RD schemes

Major banks offer different kinds of RD schemes for their customers. These schemes allow more benefits and flexibility for saving. Let us take a look at the top RD schemes by major banks - 

State Bank of India

If you are searching for which is the best RD scheme in SBI, here are the details of the SBI Recurring Deposit Scheme -

SBI offers another RD scheme called the e-SBI Flexi Deposit Scheme which is a flexible recurring deposit. Its details are -

Here are the interest rates of the best RD schemes in SBI below Rs.2 Crore -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

ICICI Bank

ICICI Bank offers two RD schemes, both of which are popular among its customers. Here are the details of the ICICI Bank Recurring Deposit Scheme -

When searching for which is the best RD scheme, you should also check out the ICICI iWish Goal Based Savings. It is a flexible RD and its details are -

The interest rates of both the RDs depend on the tenure of the RD. The rates for the general public and senior citizens are mentioned in the table below -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

HDFC Bank 

HDFC offers two RD schemes for its customers. The first is the Recurring Deposit Scheme whose details are -

The second one is a flexible recurring deposit called the My Passion Fund, whose details are as follows -

Here are the interest rates of the best RD schemes in the HDFC Bank -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Deutsche Bank

If you check the highest RD interest rates, Deutsche Bank’s product named Recurring Fixed Deposit Scheme is a top contender. Here are the details of the scheme -

This RD scheme has different interest rates for domestic, NRO, NRE, and senior citizens based on the tenure of the deposit - 

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Central Bank of India

The Central Bank of India has four RD schemes to choose from. One of the top RD schemes is the Cent Surakshit Samriddhi RD, whose details are - 

The second one is the CENT Swa-Shakti Flexi Recurring Deposit Scheme, which is a flexible recurring deposit scheme -

The interest rates offered by the bank on these two RDs are mentioned here -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

The other two schemes offered by the Central Bank of India that might be the best RD schemes for you are mentioned here -

The CENT Lakhpati RD’s maturity value is Rs.1 Lakh plus. Here is the tenure, installments, and rates of interest -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

The last scheme, the Cent Millionaire Recurring Deposit Scheme has an installment of Rs.6,250 and is payable for 10 years. The maturity amount is Rs.10 Lakh plus.

IndusInd Bank 

IndusInd Bank offers the IndusInd Bank Recurring Deposit Scheme, whose important details are mentioned here -

The rate of interests offered by the bank for the general public and senior citizens are listed below -

Note: Rates mentioned as of 13th March 2024, and can be revised by the bank without any notice. Please check with the bank before opening an account.

Types of RD Schemes

RD deposits can be of many types depending on the bank you choose. Generally, the following are the types offered by major banks -

• Regular Recurring Deposit Scheme

Anyone between the ages of 18 and 60 is eligible for these schemes. Interest rates generally range from 2.65% to 8.35%.

• Junior Recurring Deposit Scheme

Anyone above the age of 10 and below the age of 18 can open such an account. A guardian is necessary to open a minor RD account. Some banks offer higher interest rates for junior accounts to encourage saving habits at a young age.

• Senior Citizens Recurring Deposit Scheme

If you are above the age of 60, you can open a recurring deposit account and get higher interest rates. Major banks offer 0.50% more for such accounts than regular RD accounts.

• Super Senior Recurring Deposit Scheme

Some banks have these schemes for customers above the age of 80. You might either get the rates for senior citizens or higher, depending on the schemes of the bank you choose.

• NRE/NRO Recurring Deposit Scheme

These RDs are offered to people having Non-resident External and Non-Resident Ordinary accounts. They may either get similar or lower interest rates as regular RDs depending on your bank.

• Special Recurring Deposit Scheme

Banks often have special schemes and offers that provide extra benefits when you open an RD account. You might get benefits like free life insurance, part withdrawal without penalty, etc.

How to Choose the Best RD Scheme?

Before you select the best RD scheme, please note that it is not always the one with the highest interest rate. You should check other factors like ease of access, premature withdrawals, tenure, amount allowed, etc.

Here is a list of factors that affect the interest you will earn on your RD scheme -

• Type of Bank Account

Whether you have a regular savings account, an NRE, or an NRO account will play a major role. Some banks, however, offer similar interest rates for all these types of accounts.

• Tenure

How much time you deposit money also affects your interest rates. Top RD schemes with medium tenure earn the highest interest rates in general. 

• Choice of Bank

The bank you choose will have the most major role, as banks decide the interest rates. Some banks offer similar interest rates for both short and long-term deposits, as well as the general public and senior citizens.

Your bank might also have a special RD scheme that might be offering better terms.

• Age

If you are above the age of 60, chances are you will get a higher interest rate. On crossing the age of 80, the interest rate on RDs will be even higher. Sometimes, even juniors (between ages 10 and 18) can get special offers and higher interest rates.

Eligibility and Documents Required for Top RD Schemes

When you are choosing the best RD schemes for you, you must also pay attention to the eligibility criteria and the documentation required. Each bank will have different requirements, however, generally the following is true for most banks.

Eligibility Criteria for Opening a Recurring Deposit

Anyone having a bank account can start a recurring deposit. The eligibility criteria are -

• For junior accounts, the person must be between ages 10 and 18

• A guardian is required to open a minor account

• For regular accounts, the person must be aged between 18 and 60

• Above the age of 60, senior RD accounts can be opened

• Above the age of 80, super senior RD accounts can be opened

• RD accounts can also be opened jointly, by a club, group, or an organization

Documents Required for Opening a Recurring Deposit

Minimal documents are required for starting a recurring deposit -

• An application form for RD is required, however, it can also be opened through internet banking without an application form

• Your identity and address proof

• Passport-sized photographs, if required by the bank

• KYC documents, if required by the bank

Conclusion

Recurring deposit schemes are a great way to build discipline and invest without having to put aside a huge investment. You can use automated payments to contribute a minor amount every month and earn interest while you save.

It is one of the safest forms of investment as your money is not dabbled in the market. The interest rates do not fluctuate and you will get the amount that is promised to you. The lump sum amount is transferred directly to the bank account of your choice when the tenure ends.

You can check the status of RDs online through the internet or mobile banking. Top RD schemes also let you nominate someone who can get the money in the unfortunate event of your death. Banks also offer pre-approved loan offers if you have an RD with them. Loan amounts can range from 80% to 90% of the funds saved in your RD. 

However, you must note that RDs are not tax-savings investments. The interest you earn on RDs is taxable, based on the tax slab you are in.